MALCOLM CREEK

Queensland Gold and Minerals Ltd was advised by its joint venture partner Newmont Exploration Pty Ltd (Newmont) that field work for the June quarter has established initial positive results on the Malcolm Creek Gold Project 40kms south of Forsayth in north Queensland. Reinterpretation of the existing IP geophysical data has resulted in the identification of a chargeability response coincident with an Au in soil anomaly in the Pig Hole Fault area within the Bald Mountain prospect. Three soil lines confirmed the location and tenor of the soil anomaly. As a result of these findings a detailed pole-dipole IP geophysical survey is planned over the Pig Hole Fault target area with the aim of producing a 3D model of zones of high chargeability and resistivity.

Queensland Gold and Minerals Ltd has been advised by its joint venture partner Newmont Exploration Pty Ltd (Newmont) that field work has commenced on the Malcolm Creek Gold Project 40kms south of Forsayth and 80 km west of the Kidston Gold Mine in north Queensland, Australia. A BCL stream sampling programme over the entire tenement has been completed with soil sampling planned for anomalous drainages. Detailed geological mapping and rock chip sampling of the Tin Mine Mountain gold-tin target in the eastern sector of the exploration permit is proposed to commence in the immediate future.

Reconnaissance pan concentrate stream sediment sampling for tantalite, tin and gold and Bulk Cyanide Leach sampling for gold were completed over the 20 kilometre strike length of the prospective mylonite unit and has successfully focused the search. This programme has confirmed the highly anomalous nature of the 2 sq klm Malcolm Creek Dome target and highlighted a potential second target area nearby. Detailed rock chip sampling of the volcanic breccia at the main Malcolm Creek Dome target was completed and samples submitted to ALS - Chemex. Soil sampling commenced at the main Malcolm Creek Dome target. A drainage area of 4 km2 contained anomalous gold results from both the pan concentrate and Bulk Cyanide Leach (BCL) methods. This area is being soil sampled at spacings of 100m x 50m and extends easterly from the previous CRA soil grid.